Amid Calls to Slow AI Development and Middle East Tensions, Samsung Electronics and SK hynix Fall Below KRW 250,000 and KRW 1.7 Million

[Financial News] Samsung Electronics and SK hynix plunged together as calls by major big-tech CEOs to slow the pace of AI development were compounded by geopolitical instability originating in the Middle East. Foreign investors unleashed a flood of sell orders worth nearly KRW 4.6 trillion in the two stocks alone, pushing the KOSPI back down to the 6,600 range.
On the KOSPI market on the 14th, Samsung Electronics closed at KRW 249,000, down KRW 10,500, or 4.05%, from the previous trading day. This was the first time in seven trading days, since the 3rd, that Samsung Electronics had fallen below KRW 250,000. SK hynix suffered a steeper decline, closing at KRW 1.697 million after plunging KRW 115,000, or 6.35%, from the previous trading day. The stock fell below the KRW 1.7 million level for the first time in six trading days, since the 4th. Foreign investors drove the stocks lower by unloading shares worth KRW 3.3873 trillion in Samsung Electronics and KRW 1.2053 trillion in SK hynix.
The sharp drop in stock prices was attributed to calls over the weekend to slow the pace of AI investment. Comments by big-tech CEOs, including OpenAI CEO Sam Altman, that AI development should be slowed dampened investor sentiment.
The market was also hit by concerns that tensions originating in the Middle East could send oil prices soaring. After Houthi rebels’ drone attack the previous day halted operations on a Saudi Arabia oil pipeline, raising expectations of disruptions to crude-oil transportation, the price of West Texas Intermediate (WTI) rose as much as 2.90% to $102.95 per barrel on the day.
Experts analyzed that external variables and concerns related to AI simultaneously weighed on South Korea’s stock market.
Lee Sang-heon, a researcher at iM Securities, said, "Comments that AI development should be slowed pulled down the share prices of Samsung Electronics and SK hynix." He added, "In particular, Iran canceled talks that had been scheduled with Middle Eastern countries in Oman, and developments related to the Saudi Arabia oil pipeline also emerged, causing the stock market to fall sharply." He continued, "The most important variable is oil prices," adding, "If oil prices stabilize, the market will also regain stability."
[email protected] Kang Jung-mo, Lim Sang-hyuk Reporter